States and Nations Advance Bitcoin Investment Frameworks as Digital Asset Integration Accelerates

West Virginia Proposes Bitcoin Treasury Investments

West Virginia lawmakers have taken a significant step toward integrating digital assets into state-level finance by introducing legislation that would permit the state treasurer to allocate a portion of public funds into Bitcoin, precious metals, and regulated stablecoins ^[1].

Senate Bill 143, titled the "Inflation Protection Act of 2026," was introduced by Senator Chris Rose during the 2026 regular legislative session ^[1]. The measure would authorize the Board of Treasury Investments to place up to 10% of funds under its management into gold, silver, platinum, and qualifying digital assets ^[1].

The proposed legislation establishes a market capitalization threshold of $750 billion averaged over the prior calendar year for eligible digital assets, a requirement that currently limits qualification to Bitcoin exclusively without explicitly naming the cryptocurrency in the statute ^[1]. The bill concludes with language stating its purpose is "to empower the Treasurer to invest in gold, silver, and bitcoin" ^[1].

The 10% allocation cap would apply at the time of purchase. Should asset appreciation push holdings above this threshold, the board would not be required to divest but would be prohibited from additional purchases until the allocation returns below the limit ^[1].

Custody and Yield-Generating Provisions

The West Virginia proposal includes comprehensive custody requirements for digital assets. Holdings must be secured either directly by the state treasurer through a defined secure custody system, by a qualified third-party custodian, or through registered exchange-traded products ^[1]. The bill establishes standards covering key control, geographic redundancy, access controls, audits, and disaster recovery ^[1].

Beyond holding digital assets, the legislation would permit the treasurer to pursue yield-generating activities. Digital assets could be staked through third-party providers provided legal ownership remains with the state, and the treasurer could loan digital assets under rules designed to prevent additional financial risk ^[1].

Retirement funds would face stricter limitations under the proposal, restricted to investing only in exchange-traded products registered with federal or state regulators rather than holding digital assets directly ^[1].

The bill has been referred to the Senate Committee on Banking and Insurance, with a subsequent referral to the Committee on Finance ^[1]. At the time of reporting, Bitcoin was trading at $95,494 with a market capitalization of $1.91 trillion and a circulating supply of 19.98 million BTC out of a maximum 21 million ^[1].

Belarus Establishes Crypto Banking Framework

In parallel developments internationally, Belarusian President Alexander Lukashenko has signed Decree No. 19 "On Cryptobanks and Certain Issues of Control in the Field of Digital Tokens," officially creating a legal framework for Bitcoin and cryptocurrency banks ^[2].

Under the new law, a crypto bank is defined as a joint-stock company resident in Belarus' High-Tech Park (HTP) and included in a registry maintained by the National Bank of Belarus ^[2]. These institutions can provide both traditional banking services—including deposits, loans, and transfers—and activities involving digital tokens, creating a hybrid financial model ^[2].

Crypto banks will function as non-bank financial institutions subject to dual regulation, requiring compliance with rules for non-bank credit and financial institutions, including capital adequacy, risk management, anti-money laundering and counter-financing of terrorism obligations, and consumer protection standards ^[2].

The presidential website noted that "dual regulation will allow a crypto bank to offer clients innovative financial products that combine the advantages of traditional banking operations with the technological efficiency, speed, and convenience of digital token transactions" ^[2].

Belarus has pursued cryptocurrency integration since a 2017 decree that established tax-free conditions for cryptocurrency mining and trading, eliminating requirements for individuals to declare crypto income ^[2]. President Lukashenko has also promoted virtual payment systems and Bitcoin mining projects, including utilizing surplus electricity to power mining farms in the Mogilev region ^[2]. The country is expected to launch its digital ruble in full-scale operation in the second half of 2026 ^[2].